Getting our software ducks in a row

Despite SA`s relatively high level of activity in the software development arena, when it comes to software exports, it`s ranked alongside countries like Portugal and Greece where computer illiteracy is as high as 60%.

How is this possible?

The most obvious reason is that during the apartheid years, local software could not be exported due to international trade embargoes and local intellectual property (IP) was registered overseas, but things have changed significantly since then.

Feedback from international visitors like Java inventor James Gosling indicates that local developers are among the best in the world. Yet we continue to lag behind countries with economies of a similar size and activity when it comes to software exports.

If quality of IT graduates is not the problem, why are we unable to compete with countries like Ireland and even countries with a smaller economy than our own, like Israel?

At the recent opening in Durban of Microsoft`s first innovation centre aimed at supporting independent software developers in the developing world, local software champion Danny Naidoo highlighted some of the reasons for the state of SA`s software industry.

According to Naidoo, director of the developer and platforms group at Microsoft SA, four things need to change before SA can improve its ranking in the global software arena.

First, government needs to do some things around policies and frameworks to make SA more attractive as an operational base for software development houses as Ireland, Thailand, Singapore and Malaysia have done.

Let`s hope government has given this some thought in the background, while publicly championing the creation of a software economy.

A priority for SA would be to revise current IP laws to include protection for software IP. At present, copyright laws offer the only protection. However, this level of protection is very low because competitors have to change only one line of code to avoid prosecution.

This would appear to be Israel`s secret. Naidoo says it concentrates on producing IP that is licensed out and built into software products elsewhere, but still produces more software than it consumes.

In 2004, SA consumed R15 billion worth of software, but produced only around half that and exported software worth less than a billion rand.

Second, SA has to boost the number of ICT graduates in the country. Although a much more populous country, with its 75 000 ICT graduates each year, it is easy to see why India has been so successful in developing a software economy. Compare this with SA`s meagre 5 000. These feed into a pool of only 33 000 professional developers for SA, while India has around 300 000.

Granted, these figures are relative to the total population size, but SA still has to address the fundamental problem of a distinct reduction in the number of ICT graduates in the past five years.

According to Naidoo, the software industry is losing the best maths and physics students to other fields of endeavour, which will impact on innovation in the years to come, causing the ICT sector as a whole to suffer.

Perhaps software development companies need to become involved in promoting software engineering as a career.

Research by Rhodes University has shown that the future study trends of most South Africans are fixed during the grade seven year of schooling. This indicates that work needs to be done to ensure pupils are exposed to ICT-related fields of study before grade seven.

SA still has to address the fundamental problem of a distinct reduction in the number of ICT graduates in the past five years.

Warwick Ashford, portals managing editor

Third, SA has to increase the diversity of its ICT graduates. Naidoo says there is much work to be done at school level to encourage a greater racial and gender diversity among students studying in ICT-related fields.

Finally, Naidoo says SA has to tackle the dire lack of skilled ICT educators in the country. While there is a good education policy framework for introducing technology to schools, not enough has been done to ensure there are enough educators who are qualified to teach the subject.

A survey by Microsoft has shown that while most teachers support the idea of teaching technology schools, many feel they do not have the necessary skills or training.

Again private enterprise has a role to play and would do well to follow Microsoft`s example of setting up programmes to equip teachers with the technology skills they should have.

While Microsoft believes it`s possible to move SA up in the world rankings from a software consumer to a software producer, Naidoo says the country has to take action in the four areas already mentioned.

SA has to get real about what`s required to ensure the vital processes of innovation, incubation and investment all come together at the same time. Naidoo says this is essential for the successful transition of SA from software consumer to software producer.

Microsoft believes if SA can rebrand itself as a producer of quality software, venture capital will flow into the market naturally. However, this will require doubling the number of independent software vendors (ISVs) to around 1 600 in the next five years and ensuring more than half export the bulk of their products.

If a knowledge economy is ever to become a reality in SA, it seems the public and private sectors need to address the challenges of skills creation, getting policy frameworks right, improve laws to protect IP, and move to becoming an exporter of software as soon as possible.

For Microsoft, the key to achieving all this is supporting the country`s ISVs. This conviction is based on the premise that professional software developers each contribute between R0.75 million and R1.5 million to SA`s gross domestic product a year. Therefore, supporting this sector of the industry cannot fail to make a significant impact on the country`s economy.

If Microsoft is right, within the next five years SA may take its place alongside the software success stories of Ireland, India, and the like. Let`s hope it has backed a winner.